KUCHING: Subur Tiasa Holdings Bhd has returned to profitability, posting a group net profit of approximately RM3.21 million in the financial year ended December 31, 2024 (FY2024), compared to a loss of RM15.7 million in FY2023. The turnaround was driven by the strong performance of its oil palm business.
This achievement came despite a decline in group revenue to RM430.8 million from RM464.8 million in FY2023.
The company’s earnings per share stood at 1.7 sen, compared to a loss per share of 8.34 sen previously.
In FY2024, Subur Tiasa posted a significantly higher pre-tax profit of RM30.67 million from its oil palm segment (FY2023: RM8.995 million), reflecting a substantial increase of RM21.68 million. This growth was in tandem with a 10 per cent rise in revenue to RM260.59 million (RM235.88 million).
Conversely, the timber segment’s performance deteriorated, reporting a pre-tax loss of RM22.19 million (- RM15.62 million), as revenue plummeted by 31 per cent to RM142.1 million (RM207.2 million).
The “Others” segment, which includes pipe manufacturing, automobiles, and other businesses, showed improvement. Its pre-tax profit grew by 29 per cent to RM614,000 (RM476,000) on expanded revenue of RM28.12 million (RM21.77 million).
Year-on-year, Subur Tiasa attributed the strong financial results of its oil palm segment to an 11 per cent increase in the average crude palm oil (CPO) price, which rose from RM3,807 per tonne to RM4,214 per tonne in FY2024.
For the timber segment, the company stated that the decline in FY2024 revenue was due to lower sales volumes of logs and timber panels, while the widening losses were mainly attributed to impairment provisions on non-operating assets.
In 4Q2024, Subur Tiasa recorded improved earnings, with net profit doubling to RM4.61 million (4Q2023: RM2.31 million), even though revenue dropped slightly to RM115.34 million (RM117.92 million).
During the quarter under review, the oil palm segment reported a 41 per cent decline in pre-tax profit to RM12.4 million (RM21.1 million), despite a sharp increase in turnover to RM78.58 million (RM66.19 million).
“Quarter-on-quarter, revenue improved by 19 per cent to RM78.6 million, and the segment reported a pre-tax profit of RM12.4 million, mainly due to a 32 per cent increase in CPO prices from RM3,670 per tonne to RM4,850 per tonne,” the company noted in its explanatory notes.
The timber segment significantly reduced its pre-tax loss to RM4.54 million (-RM9.5 million), though revenue declined to RM28.4 million (RM46.6 million), primarily due to lower sales of logs and timber panels.
The “Others” segment also performed well, with its pre-tax profit rising to RM2.41 million (RM1.27 million), in line with a 62 per cent increase in sales to RM8.36 million (RM5.17 million).
Compared to the immediate preceding quarter (3Q2024), Subur Tiasa reported a 59 per cent surge in group pre-tax profit to RM10.27 million in 4Q2024 (3Q2024: RM6.47 million), as revenue expanded to RM115.3 million (RM111.8 million).
The improved earnings were driven by better performance in the timber segment, which reduced its pre-tax loss to RM4.54 million (- RM8.78 million), and the turnaround of the “Others” segment, which posted a pre-tax profit of RM2.41 million (- RM1.19 million).
However, the oil palm segment recorded a 25 per cent drop in pre-tax profit to RM12.4 million (RM16.44 million), despite an 11 per cent increase in revenue to RM78.58 million (RM70.97 million). The higher revenue was attributed to a 21 per cent increase in CPO prices, which rose from RM3,993 per tonne in 3Q2024 to RM4,850 per tonne.
Looking ahead to the new financial year, Subur Tiasa stated: “The group remains optimistic about the outlook for the oil palm segment, supported by sustained CPO price strength and low inventory levels. Palm oil stock levels are expected to remain tight in the coming months due to lower production and strong demand, particularly for festive-driven consumption.
“The implementation of Indonesia’s B40 biodiesel mandate is also expected to support long-term demand.”
Subur Tiasa anticipates that CPO prices will trade within a firm range, driven by constrained supplies of edible oils, seasonal production factors, and global market dynamics.
“While production is expected to gradually recover, ongoing weather uncertainties and policy developments in major producing countries may influence price movements.
“The group is poised to leverage market conditions through cost efficiency and operational optimisation for sustained growth,” the company added.
